Minnesota Statutes

Minn. Stat. § 216B.23 (2026)

Lawful Rate; Reasonable Service

✓ current as of May 2026

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Subdivision 1.Determination as to rate; order.

Whenever upon an investigation made under the provisions of Laws 1974, chapter 429, the commission shall find rates, tolls, charges, schedules or joint rates to be unjust, unreasonable, insufficient, or unjustly discriminatory or preferential or otherwise unreasonable or unlawful, the commission shall determine and by order fix reasonable rates, tolls, charges, schedules, or joint rates to be imposed, observed, and followed in the future in lieu of those found to be unreasonable or unlawful.

Subd. 1a.Authority to issue refund.

(a) On determining that a public utility has charged a rate in violation of this chapter, a commission rule, or a commission order, the commission, after conducting a proceeding, may require the public utility to refund to its customers, in a manner approved by the commission, any revenues the commission finds were collected as a result of the unlawful conduct. Any refund authorized by this section is permitted in addition to any remedies authorized by section 216B.16 or any other law governing rates. Exercising authority under this section does not preclude the commission from pursuing penalties under sections 216B.57 to 216B.61 for the same conduct.

(b) This section must not be construed as allowing:

(1) retroactive ratemaking;

(2) refunds based on claims that prior or current approved rates have been unjust, unreasonable, unreasonably preferential, discriminatory, insufficient, inequitable, or inconsistent in application to a class of customers; or

(3) refunds based on claims that approved rates have not encouraged energy conservation or renewable energy use, or have not furthered the goals of section 216B.164, 216B.241, or 216C.05.

(c) A refund under this subdivision does not apply to revenues collected more than six years before the date of the notice of the commission proceeding required under this subdivision.

Subd. 2.Finding as to service; order.

Whenever the commission shall find any regulations, measurements, practices, acts, or service to be unjust, unreasonable, insufficient, preferential, unjustly discriminatory, or otherwise unreasonable or unlawful, or shall find that any service which can be reasonably demanded cannot be obtained, the commission shall determine and by order fix reasonable measurements, regulations, acts, practices, or service to be furnished, imposed, observed and followed in the future in lieu of those found to be unreasonable, inadequate, or otherwise unlawful, and shall make any other order respecting the measurement, regulation, act, practice, or service as shall be just and reasonable.

Subd. 3.Copy of order served; notice.

A copy of the order shall be served upon the person against whom it runs or the person's attorney, and notice thereof shall be given to the other parties to the proceedings or their attorneys.

Notes of Decisions

Cited in 9 cases, 1983–2009 · leading case: Peoples Nat. Gas Co. v. Minnesota Pub. Utils. Comm'n, 369 N.W.2d 530 (Minn. 1985).

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Peoples Nat. Gas Co. v. Minnesota Pub. Utils. Comm'n, 369 N.W.2d 530 (Minn. 1985). · cites it 4× “5 (1980) (“If, after the hearing, the Commission finds the rates to be unjust or unreasonable or discriminatory, the commission shall determine the level of rates to be charged or applied by the utility * * * and the rates are thereafter to be observed * * *.”

Hoffman v. N. States Power Co., 764 N.W.2d 34 (Minn. 2009). · cites it 3× “16 (2008), and may adjust rates according to its own investigations and judgment, Minn.Stat. § 216B.23 (2008). Allowing courts to examine a utility rate structure that has been approved by the MPUC would infringe upon the authority delegated by the legislature to the MPUC, and…”

Application of Minnegasco, 565 N.W.2d 706 (Minn. 1997). · cites it 2× “§ 216B.23, subd. 1 • (emphasis added); see also id.”

Peoples Nat. Gas Co. v. Minnesota Pub. Utils. Comm'n, 348 N.W.2d 347 (Minn. Ct. App. 1984). · cites it 7× “The second mechanism for changing rates, Minn.Stat. § 216B.23 (1980) is initiated by a party other than the utility.”

Petition of Minnesota Power & Light Co., 435 N.W.2d 550 (Minn. Ct. App. 1989). · cites it 2× “Minnesota Power also cites to Minn.Stat. § 216B.23 (1986), which provides: Whenever upon an investigation * * * the commission shall find rates, tolls, charges, schedules or joint rates to be unjust, unreasonable * * * or unlawful, the commission shall determine and by order fix…”

Application of Minnegasco, 556 N.W.2d 607 (Minn. Ct. App. 1997). · cites it 7× “Minn.Stat. § 216B.23, subd. 1 (1996) (emphasis added).”

In Re Review of the 2005 Annual Automatic Adjustment of Charges for All Elec. & Gas Utils., 748 N.W.2d 322 (Minn. Ct. App. 2008). · cites it 2× “Minn.Stat. § 216B.23, subd. 1 (2006). The commission does so through procedures set forth in Minn.”

In re Minnesota Power's Transfer of M.L. Hibbard Units 3 & 4 Boilers & Related Facilities to the Duluth, 399 N.W.2d 147 (Minn. Ct. App. 1987). · cites it 7× “Minn.Stat. § 216B.23, subd. 1 (1984). In its order approving the transfer, the PUC gave the following reasons for its decision not to reduce simultaneously Minnesota Power’s rates: The transfer constitutes less than 0.”

Peoples Nat. Gas Co. v. Minnesota Pub. Utils. Comm'n, 342 N.W.2d 152 (Minn. Ct. App. 1983). · cites it 2× “5 and Minn.Stat. § 216B.23. March 15, 1982: Erie, Hibbing and Hanna petitioned for rehearing or reconsideration of the PUC’s order of February 22, 1982.”

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